COVID-19 has changed life (and business) as we have been accustomed to. For real estate practitioners, closing transactions in the midst of closure of governmental offices including municipal recorders offices has unique challenges. During this time, consider the following:

Electronic Recording. If possible, utilize electronic recording mechanisms available from title and escrow companies. Most states allow electronic or online recording mechanisms that will return a document number and time stamp when recording occurs. This is the most efficient method of recording during the closure.

Drop Boxes. Some states are implementing plans that include drop boxes at recorders' offices that will return a receipt as soon as you drop the document to be recorded. Documents are recorded in the order in which they are received. This methodology is not as sound as electronic recording given issues of priority. In jurisdictions following the so called “first to the courthouse” method to determine the order of recording, blind drop boxes will create new issues for title insurance and lien holders.

Alternative Methods. Most recorders’ offices are beginning to implement alternative methods for recording during the social distancing mandates from various states. For example, counties in Illinois are encouraging online and electronic recording, but, where that is not possible, these counties have established a hotline number for appointments for in-person recording of documents. These by-appointment-only methods will require much more planning by those guiding deals to closure.

Title companies and escrow companies are weighing these issues in the face of quickly changing circumstances and may have new mandates and exceptions to normal “gap coverage” during this time.

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